Installing a solar system is no small investment. But you don’t have to lose an arm and a leg to go solar. There is a wide range of solar financing options to choose from. Keep reading to find out the best one for your home and lifestyle.
Cash Purchase
Purchasing your system upfront with a cash purchase is the best way to maximize your savings. Although choosing to do a cash purchase has the highest upfront cost (since you are paying for your system in full) it provides the most savings compared to other solar financing options. You also have 100% ownership of your system.
How do you save more with a cash purchase? Because you pay for your system entirely upfront, you avoid any future electricity rate increases. You’ll also still be eligible for current solar tax and financial incentives, which is important to take advantage of since the Solar ITC incentive will end in 2024 for residential systems.
Pros:
- Best way to maximize savings
- Don’t have to worry about paying off system later
- 100% ownership of system
- Qualifies for solar incentives
Cons:
- Must have funds available to pay for system upfront
Solar Loan
Another way to own your system is to go with a solar loan. Solar loans allow you to go solar with $0 down, which is great in making solar more accessible. Like any other loan, you will pay off your system monthly. Monthly solar system bills are often lower than what you would normally pay for your electricity bill. As long as you can afford your monthly electricity bill, you can afford to have solar.
Pros:
- $0 down
- 100% ownership of system
- Qualifies for solar incentives
Cons:
- Have to worry about paying for system for foreseeable future
Solar Lease & PPAs
Solar Leases and Power Purchase Agreements are another affordable way to go solar. They are similar to solar loans, but instead of owning your system, a third party will have ownership. But even if you don’t own your system, you can still benefit from some of the savings of going solar.
In a solar lease or PPA, a third party will own your system and sell you the electricity produced by the panels at a certain rate. You’ll usually have a fixed electricity rate for the next 25 years. This rate will be about 10-30 percent below your current electricity rate. Which is great since utility company rates have only gone up as time goes on.
Because your system is owned by a third party, that third party is responsible for monitoring and maintaining the system. Essentially you’ll have your own personal maintenance crew to take care of your system. However, since you don’t have ownership of your system, you will not be eligible to receive any solar financial incentives and rebates. Instead, the third party who owns your system will receive those benefits.
Pros:
- $0 down
- System maintained and monitored by professional
- Still sees lowered monthly electricity bills
Cons:
- Don’t own your system
- Won’t see an increase in home value if you decide to sell your home
- Not eligible for solar tax incentives and rebates
We hope this explanation gave you some insight into choosing the best financial option for your solar system. To view our financial plans as well as our exclusive SunBound system benefits, check out our plans & services page. For further financials or solar related questions, feel free to contact us using the form below.
